Emergence of Organized Retailing and its Impact on Unorganized Retailer In Fmcg Segment _A Study in Major Cities of Andhra Pradesh and Telangana

Abstract

In developing countries like India the retail business has got to play vital role in the share of gross domestic product and providing employment chance. We can glance a congruence of both organized and unorganized retail stores we will also observe that both organized and unorganized retailers are proximate to each other. This thesis objectives covers whether the emergence of organized retail is effecting the unorganized retailers business or not, to know the customers satisfaction towards the merchandize, pricing strategies of the unorganized and organized retailers and whether the proximity between the stores effecting the customers shopping flexibility or not. In the study data has been collected from the sample of 507 unorganized retailers and also from 1017 customers for drawing a conclusion regarding the existence of the organized retailer s effect on the unorganized retailers. After analyzing the data from the unorganized retailers and customers the data has been tested by applying Chisquare and Paired T test by using SPSS software. It was found that there is an effect on the unorganized retailer with the entry of the organized retail stores. In case of customers it was found that there are three types of customers i.e. 414 only unorganized retailers customers, 144 only organized retailers customers and 459 customers of both the retailers. From the tests conducted on customers data it was found that customers are satisfied with the merchandize and prices of the organized retailers and not satisfied with the merchandize and prices of the unorganized retailers, it is also proved that there is an association between the proximity of the store and customers shopping flexibility. This study concluded that unorganized retailer must take necessary care towards quality of merchandise and pricing policies in order to attract the customer otherwise he cannot sustain due to tough competition given by the organized retailer.